The Federal Housing Finance Agency has announced targeted changes to Fannie Mae and Freddie Mac’s guarantee fee pricing by eliminating upfront fees for certain borrowers, while implementing targeted increases to the upfront fees for most cash-out refinance loans.
FHFA is eliminating upfront fees for first-time homebuyers at or below 100 percent of area median income and below 120 percent of AMI in high-cost areas. Additionally, upfront fees will be cut for HomeReady and Home Possible loans; HFA Advantage and HFA Preferred loans; and single-family loans supporting the Duty to Serve program.
The new fee reductions will go into effect as soon as possible. The implementation of new fees for cash-out refinance loans will begin February 1, 2023, in order to minimize market and pipeline disruption.